A six-year project for little egypt inc results in


A six-year project for Little Egypt, Inc. results in additional accounts receivable of $150,000, additional inventory of $50,000, and additional accounts payable of $80,000 today. What is the change in the NPV of a project solely due to the additional net working capital (NWC) needs? Assume a 14% discount rate, and the recovery of net working capital at the end of the project. A) a decrease of $34,606 B) a decrease of $42,670 C) a decrease of $120,000 D) a decrease of $58,689 Also, answer D: a decrease of $58,689 is incorrect.

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Financial Management: A six-year project for little egypt inc results in
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